Product

• the product must match the desires of the customers if not then your product will go to waste which leads to a decrease of revenue.
• The Design Mix: This includes three elements that are crucial in product design:

  • Function: How well the product works for the customer, such as durability or ease of use.
  • Aesthetics: The visual and sensory appeal (e.g., does it look and feel good?).
  • Cost: Ensuring the product is cost-effective and profitable.
• • Product Life Cycle: Stages that a product typically goes through:
  • Introduction: Focus on building awareness with limited sales and high advertising.
  • Growth: Sales increase, and product uniqueness is emphasized.
  • Maturity: Sales growth slows, focus on differentiation.
  • Decline: Sales and profits fall, prices may be reduced.
  • Extension Strategies: Techniques to prolong the product’s life in the market, such as:
  • Finding new uses or changing the appearance.
  • Encouraging more frequent usage or adapting it as "new and improved."
• product differentiation


  consumers see your product differently to rivals
• product life cycle

  a theory that every product goes through 4 stages: introduction, growth, maturity, decline
• extension strategy

  prolong sales of a product for the medium to long term, prevent it from a decline phase
• Growth Stage: As more people become aware of the product, sales increase rapidly. Costs remain relatively stable while profits rise sharply.
• Introduction stage: When a new product enters the marketplace. Sales are low but costs can be high due to research and development. Profits may also be negative at this point.
• 1)Introduction

  • Characteristics: Product is launched and newly introduced to the market. Sales start slowly as customers become aware. High development and marketing costs often lead to little or no profit at this stage.
  • Objective: Build awareness and attract early adopters.
  • Pricing Approach: Often high to recover costs or low to attract interest quickly
• 2)Growth

  • Characteristics: Sales begin to increase rapidly as the product gains popularity. Profits grow as production costs decrease and brand awareness improves. Competitors may start entering the market.
  • Objective: Maximize market share and establish brand preference.
  • Pricing Approach: Prices may increase as demand grows, or remain low to capture a larger market.
• Maturity

  • Characteristics: Sales peak and then stabilize as the product is well-established in the market. Competition is intense, so efforts focus on maintaining market share. The market may become saturated.
  • Objective: Maximize profit while defending against competitors.
  • Pricing Approach: Competitive pricing is common to retain customers, and there may be promotional discounts.
• Decline

  • Characteristics: Sales and profits start to decline as the product loses appeal or becomes outdated. There’s reduced demand, and some competitors may exit the market.
  • Objective: Maximize remaining profits or phase out the product.
  • Pricing Approach: Prices are often lowered to clear out inventory, though prices may rise slightly if only loyal customers remain.